Business World

US companies face new hiring difficulti­es, raise wages

- Washington Post,

A growing share of US employers are struggling to hire new workers and some have raised wages as a result, according to a survey released Monday. The National Associatio­n of Business Economists (NABE) said its quarterly survey showed members were a little less sanguine about the prospects for strong economic expansion over the next year, although most still expect sustained quarterly growth of better than 2%.

WASHINGTON/NEW YORK — The top Democrat on the US House of Representa­tives’ antitrust subcommitt­ee has voiced concerns about Amazon. com, Inc.’s $13.7 billion plan to buy Whole Foods Market. Inc. and is pushing for a hearing to look into the deal’s impact on consumers.

The deal announced in June marks the biggest acquisitio­n for the world’s largest online retailer. Amazon has not said what it would do with Whole Foods’ stores and other assets, but analysts and investors worry the deal could upend the landscape for grocers, food delivery services and meal-kit companies.

US Representa­tive David Cicilline requested the hearing on Thursday in a letter to the chair of the House Judiciary Committee and the subcommitt­ee chairman.

Amazon and Whole Foods declined to comment.

Amazon shares closed up 0.1% at $1,001.81. Whole Foods rose 0.3% to $42.10.

“Amazon’s proposed purchase of Whole Foods could impact neighborho­od grocery stores and hardworkin­g consumers across America,” the Rhode Island Democrat said in a statement. “Congress has a responsibi­lity to fully scrutinize this merger before it goes ahead.”

The deal must be approved by US antitrust enforcers, most likely the Federal Trade Commission (FTC).

Congress plays no formal role in that process but hearings often highlight the possible impact of deals on consumers. The hearing is unlikely to happen without Republican support.

FTC members are named by the president. A wild card in the review is the view of President Donald Trump, who famously said before his election that Amazon has “a huge antitrust problem.” Trump was unhappy about coverage of his campaign by the

owned by Amazon Chief Executive Jeff Bezos.

Cicilline’s district includes most of the city of Providence, home to United Natural Foods, Inc., which is Whole Foods’ primary supplier.

The company, whose supplies account for roughly one-third of Whole Foods sales and has a contract with the retailer through 2025, said it did not ask the lawmaker to intervene. Prior to the Amazon bid, activist investor group Jana Partners had criticized Whole Foods for high costs associated with its United Natural Foods contract.

US Representa­tive Ro Khanna, a California Democrat, said in a podcast this month that Amazon’s size and clout could hurt small retailers and eventually lead to higher prices.

This week, hedge fund manager Douglas Kass from Seabreeze Partners Management, Inc. said he was shorting shares of the retailer after hearing rumblings on Capitol Hill about Amazon’s size and clout.

“I am shorting Amazon today because I have learned that there are currently early discussion­s and due diligence being considered in the legislativ­e chambers in Washington, DC,” he wrote in a note to investors on Wednesday. “If I am correct, word of this could lower Amazon’s shares by 10% overnight.”

Kass said in e-mailed comments to Reuters on Friday that he has what he called a “core” short position in Amazon, meaning a sizeable bet based on a long-term outlook.

Kass is followed for his bets on declines in companies’ share prices. He shorted Marvel Entertainm­ent in 1992 when its shares were in the high $60s, and the company went bankrupt 1-1/2 years later.

While antitrust experts have said they expected Amazon’s bid to win regulatory approval, some critics argue the deal should be blocked because it would give the retailer a big head start towards domination of online grocery delivery. —

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